Contents



1. Introduction 2.
2. Labour market
3.
3. Compensation 3.
3.1 Forms of pay
3.
4. Differences in the base wage
4.
4.1 Education/geography 5.
4.2 Degree of competition and the level of demand for the products 5.
4.3 Geography 6.
4.4 Present level of wages 7.
5. Job Evaluation 8.
5.1 Point system 8.
5.2 Individual incentive-pay system 9.
6. Conclusion 10.
References 11.












1. Introduction

In today’s labour market there are a lot of different occupations. When an employee want to perform some of them he/she need to has particular kind of education to perform it well.
Employees with different professions have different expectations of their wage. For example: the supervisor will receive higher base wage than the clerk worker. Why the organizations do not pay every employee the same wage? Why there are differences between the wages in the organizations and also in the labour market?
The purpose of this paper is to answer these questions and find the relations between wages and professions.













2. Labour market

Labour market is created by labour force represented by employees, organizations represented by employers and the government. Employees offer their work to the organizations. Organizations use it to achieve their goals and the government set the conditions in this market such as minimum wage, hiring and lay-offs conditions.


3. Compensation

“Employee compensation includes all valued resources, such as salaries, hourly wage and incentive pay, given by employer to employee as a return for his/her work. Compensation decisions are many and varied. They include how much to pay people who perform both similar and different types of work; whether to use pay to recognize variations in individual employees’ experience and/or performance; and how to allocate pay between cash and benefits and services. These decisions must be consistent both with society’s changing values about what constitutes fair and equitable pay and with government legislation and regulations. “

3.1 Forms of pay
“Base wage is the basic cash compensation that the employer pays for the work performed.